The central government may soon bring in a new policy to make data accessible to all, which will help formalise the thriving fintech sector in India. With this policy, the Niti Aayog aims to end the monopoly of a few top tech companies and make it a level playing field for all companies that uses data to understand consumer habits. As per the plan, companies from all sectors, including banking, e-commerce, health and education, will be able to access the data. In the process, the government will also make sure people's identity is not compromised in any way.
The data collection will include transactions of sale and purchase, borrowings, loans, health records, insurance records, assets, etc. Data will be collected from all the companies on a real-time basis, which would be anonymised, and converted into indices and trends for further evaluation of consumer behaviour, reported The Economic Times.
The overall impact of such a programme will help each player that relies on data in understanding consumer behaviour without compromising on people's data. The fintech sector in India is thriving but to help it realise its fullest potential, the government wants to make data accessible to all. A regulator with overcharging powers will ensure consumer consent remains intact and appropriate measures will be taken to keep it safe. The independent regulator will oversee sharing and consumers will have powers to decide if they want to share any information or not.
The idea is in initial stages but if the government decides to implement it, the Niti Aayog will prepare a comprehensive policy. The process will also require licencing of data aggregators and brokers, information structuring and making people aware of the policy. Over 1,200 fintech firms, which include major players like Paytm Payments Bank, MobiKwik and PolicyBazaar, among others, will benefit from the policy.
Edited by Manoj Sharma